Best location for property investment in 2017
With several changes to buy-to-let taxes on the cards in 2017, the UK’s residential property investment market now presents different challenges for landlords and investors.
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Why invest in Luton?
Luton is one commuter belt town which has received £1.5 billion worth of private investment. The Enterprise Zone has clear plans for investment for the future including the expansion of the town’s airport.
London Luton Airport is the UK’s 5th busiest and the fastest growing airport. It contributes £2,000 per minute to the UK economy and is expanding its destinations year-on-year.
Just 22 minutes by train from Central London, Luton has emerged as a popular choice for buyers and renters.
The town boasts great transport links and is just 10 miles from the M25. In total, 23 million people are within two hours’ reach of the town.
However, it is not a lifeless commuter belt town built around transport. Luton is a town with a rich cultural heritage and has many award-winning museums and parks. It is home to the University of Bedfordshire – ranked 64th by the Times Higher Education UK rankings – and is known for the Luton International Carnival which has been running for over 40 years.
Commuter belt emerges triumphant
Soaring London property prices have forced many people to look outside of the capital for more reasonable house prices, a higher a standard of living and a better work-life balance.
Buyers and renters see the value in commuter towns in today’s market. Research has shown that homeowners and tenants in commuter towns often enjoy a family-focused lifestyle and generally have a more pleasant outlook.
Data backed by Savills shows that buyers save £3,000 on average per minute out of London by train. With this type of saving in mind, it makes sense that people are more willing to commute into London to work.
However, demand for housing in some commuter towns is so high that house prices are increasing at a faster rate than in London.
Highest house price growth in the UK
Data released by the Halifax has shown that property prices in Luton increased at a fastest pace than the rest of the UK. In 2016, prices in the town were up by 19.4%, a figure much larger than the UK average of 7.5%.
The average property price in Luton has increased by £48,000 in 2016 yet, Luton remains one of the five most affordable towns in the country for commuting to London.
Martin Ellis, housing economist with the Halifax, said, “Most of the areas that have seen the biggest house price rises during 2016 are either within close commuting distance of the capital or in outer London. Demand in these areas has risen as substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas.”
With such high demand for rental homes and properties for sale in Luton, the town has positioned itself as the best location for property investment in 2017.